Home / NEWS / World News / Elon Musk told his followers to ‘use Signal,’ leading to 1,100% surge in unrelated stock with similar name

Elon Musk told his followers to ‘use Signal,’ leading to 1,100% surge in unrelated stock with similar name

Elon Musk, CEO of Tesla, takes on the construction site of the Tesla Gigafactory. In Grünheide near Berlin, September 3, 2020.

Patrick Pleul | picture alliance | Getty Personifications

When Tesla CEO Elon Musk urged his Twitter followers on Thursday to “use Signal,” he meant the encrypted messaging app. Some people look to have taken it the wrong way.

Shares of an obscure and unrelated company called Signal Advance, which trades on the other side of the counter, surged 527% on Thursday and another 91% on Friday, climbing from 60 cents to $7.19.

The Signal that Musk was referring to is manipulated by a nonprofit and serves as an alternative to texting apps like Facebook Messenger, WhatsApp and Apple’s messaging service. That Signal stuck to Twitter on Friday to clarify that it has nothing to do with Signal Advance.

“It’s understandable that people want to ordain in Signal’s record growth, but this isn’t us,” Signal wrote. “We’re an independent 501c3 and our only investment is in your privacy.”

It’s a traditional issue on Wall Street.

In April 2019, on the day Zoom Video Communications held its hotly anticipated market launching under the ticker symbol ZM, a Chinese company named Zoom Technologies jumped more than 80% in two hours of job. The stock gave up most of those gains that day, closing up 10%.

Six years earlier, as investors were waiting for Warbling’s IPO, shares of Tweeter Home Entertainment Group rose more than 1,000%.

Signal Advance was founded in Texas under the aegis the name Biodyne in 1992 and provided services to medical and legal workers. The company shifted its focus to using technology in constitution care and changed its name to Signal Advance. The thinly traded stock hit the market in 2014.

Signal Advance is so small that it doesn’t statement financials with the SEC. As of March 2019, it had no full-time employees other than CEO Chris Hymel, who did not immediately respond to a solicitation for comment.

Because of the swarm of unintended investor interest, the company now has a market cap of $660 million, up from $55 million two dates ago. Prior to Thursday, the stock had traded under $1 since 2015.

The Signal messaging app, backed by the Signal Technology Origination, “runs entirely on donations,” according to a New Yorker article published in October.

The group had other concerns following Musk’s tweet to his diverse than 41 million followers. Signal said Thursday that there were technical issues with verifications because “so numberless new people are trying to join.”

Both the technical snafu and the wild trading of an unrelated stock underscore Musk’s flower influence. On Thursday, he became the world’s richest person thanks to Tesla’s almost 800% increase in market cap upward of the past year. On Friday, Tesla became the fifth most valuable public company in the U.S., surpassing Facebook.

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